CLICK HERE TO LISTEN LIVE - POWERED BY KEIR 101.1 EAST IDAHO'S NEWS TALK

JPMorgan Chase to Pay Billions in Mortgage Investment Settlement

Business News

0  Updated at 7:00 pm, October 25th, 2013 By: ABC Digital
Share This Story

Scott Eells/Bloomberg via Getty Images (WASHINGTON) — The nation’s biggest bank has agreed to pay billions to settle claims over mortgage investments.  

JPMorgan Chase will pay more than $5 billion to resolve claims from Freddie Mac and Fannie Mae.  

Those quasi-government agencies bought loads of investments from JPMorgan that were tied to mortgages.  All of those securities tanked when the housing bubble burst, and the Federal Housing Finance Agency says Fannie and Freddie were misled by the bank into thinking the investments were sound when they really were toxic.

The government bailed out Fannie and Freddie, which have since repaid most of the taxpayer money.
 
Copyright 2013 ABC News Radio